THE SENATE	S.B. NO.	3021
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII

A BILL FOR AN ACT

relating to transportation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the single greatest recent factor contributing to the increasing cost of living in Hawaii is the rising cost of transportation. Due to increasingly expensive fossil fuels and a lack of cheaper transit options, Hawaii residents already pay among the highest cost to commute in the country. In January 2022, the United States Bureau of Labor Statistics reported that auto-related costs were astonishing twenty-three per cent higher than the year before. In Hawaii, a recent analysis studied how much all the direct and indirect costs of car ownership and use cost in 2020 and found that local taxpaying families pay about $24,400 per year, even if they don't own a car. These costs are only fifty per cent covered by user fees. In addition, personal vehicle costs add another $16,200 per year to those household expenditures.

The legislature further finds that climate change caused by carbon emissions from burning fossil fuels poses a serious threat to the economic well-being, public health, natural resources, and environment of Hawaii. The State has committed to eliminating fossil fuels from the electricity and transportation sectors and achieving negative carbon emissions for Hawaii by 2045. The legislature finds that meeting the State's lower cost of living and clean energy goals necessitates the rapid transition to electric vehicles that utilize local, renewable energy sources. The recently released report by the Hawaii state energy office on Hawaii's pathways to decarbonization noted that on its current path, the State will only achieve a fifty-four per cent reduction in carbon emissions by 2045, well short of the one hundred per cent reduction needed for carbon neutrality.

The legislature also finds that electric bicycles are significantly more cost effective for local families and better for the environment than gas powered motor vehicles and can effectively get many Hawaii residents to locations as conveniently as gas powered motor vehicles. The current electric bicycle and moped rebate program, even with minimal promotion and low subsidy, has helped almost three hundred people access electric bikes since its inception. However, its reach has been limited by age restrictions that currently possible for a fifteen year old student to drive a sports car, but not acquire a bicycle through this program.

In 2022, Denver's electric bike rebate program providing families with cheaper transit options led to considerable cost savings for Denver families, helped reduce vehicular traffic on crowded roads, and ultimately replaced many trips by car with trips by bike. This meant twenty-two miles a week on average per user, collectively displacing one hundred thousand miles weekly. Ninety-six per cent of respondents said the availability of the rebate made the difference when deciding to buy an electric bike. 

The purpose of this Act is to:

(1) Help reduce the cost of transportation, reduce the cost of living, and reduce traffic on Hawaii's roads by improving the existing electric bicycle and moped rebate program to further encourage the purchase and use of electric bicycles, electric mopeds, and other electric mobility devices; and

(2) Update electric mobility device and electric bicycle definitions to align with federal and state policies and programs.

SECTION 2. Section 196-2, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

""Electric micro-mobility device" means any ground transportation device such as a standing scooter, skateboard, board riding on a single or double wheels, or similar device which is powered either exclusively by electricity from a battery charged from an external source, or by electricity from a battery charged from an external source in addition to human power, which is designed to transport a single person, with a range exceeding not less than twelve miles and maximum speed of twenty-eight miles per hour, on which a person may reasonably commute to and from regular destinations.

"Electric bicycle" means a bicycle equipped with fully operable pedals, a saddle or seat for the rider, and an electric motor of seven hundred fifty watts or less that meets the requirements of one of the following three classes:

(1) Class 1 electric bicycle, which is an electric bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of twenty miles per hour;

(2) Class 2 electric bicycle, which is an electric bicycle equipped with a motor that may be used exclusively to propel the bicycle, and that is not capable of providing assistance when the bicycle reaches the speed of twenty miles per hour; and

(3) Class 3 electric bicycle, which is an electric bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of twenty-eight miles per hour."

SECTION 3. Section 196-7.8, Hawaii Revised Statutes, is amended to read as follows:

"[[]§196-7.8[]] Electric [bicycle and electric moped] mobility rebate program; third-party administrator; special fund. (a) The department of transportation shall administer a rebate program that incentivizes the purchase of new electric [bicycles and new electric mopeds] mobility devices and may contract with a third-party administrator pursuant to subsection (i) to operate and manage the rebate program.

(b) Each eligible purchase of a new electric bicycle, [or] new electric moped, or new electric micro-mobility device shall receive a rebate of [either twenty per cent of the retail cost or $500, whichever amount is lower;] $750; provided that no individual shall receive more than [$500] $750 in total rebates each fiscal year[.], unless also qualifying for the additional assistance rebate as outlined in (i), in which case the eligible purchase shall receive not more than $1,500 in total rebates each fiscal year. No non-profit organization shall receive more than $10,000 in total rebates each fiscal year.

(c) The department of transportation shall not issue more than $700,000 in total rebates under this section each fiscal year; provided that the electric [bicycle and electric moped] mobility subaccount within the highway development special fund pursuant to section 264-122(d) contains sufficient funds to pay the rebates. The department of transportation shall not be liable to pay any refund if sufficient funds are unavailable. The department of transportation shall allow valid claims filed by eligible applicants for whom sufficient funds may not be immediately available to receive a rebate as funds may be available in a subsequent year.

(d) The department of transportation shall:

(1) Prepare any forms that may be necessary for an applicant to claim a rebate pursuant to this section; [and]

(2) Require each applicant to furnish reasonable information to ascertain the validity of the claim, including but not limited to the signature of the buyer and individual responsible for the sale on behalf of a retail store at the time of sale, a copy of valid government issued photo identification of the buyer at the time of the sale, receipt of purchase, name and address of the retail store, verification of eligibility, and any other documentation necessary to demonstrate the legitimate purchase of a new electric [bicycle or new electric moped.] mobility device; and

(3) Prepare a retailer application and portal to provide rebates directly at the point of sale to expedite the rebate process.

(e) This section shall apply to new:

(1) Electric bicycles [capable of speeds of no more than twenty-eight miles per hour; and];

(2) Electric mopeds[,]; and

(3) Electric micro-mobility devices capable of speeds of not more than twenty-eight miles per hour,

purchased at a retail store after July 1, 2022.

(f) Applicants shall submit an application to the department of transportation within twelve months of the date of purchase to claim a rebate from the electric [bicycle and electric moped] mobility rebate program. Failure to apply within twelve months of the date of purchase shall constitute a waiver of the right to claim the rebate.

(g) Nothing in this section shall alter taxes due on the original purchase. Any rebate received pursuant to this section shall not be considered income for the purposes of state or county taxes.

(h) In administering the electric mobility rebate program, the department of transportation shall provide rebates to:

(1) Persons who are residents of the State and fifteen years or older, who purchase a new qualifying electric bicycle, electric moped, or electric micro-mobility device; and

(2) Non-profit organizations who are registered in the State who purchase one or more new qualifying electric bicycles, electric mopeds, or electric micro-mobility devices.

[(h)] (i) In administering the electric [bicycle and electric moped] mobility rebate program, the department of transportation shall provide [rebates] an additional assistance rebate in addition to the rebate in subsection (h). The additional assistance rebate shall be $750 or the full retail amount, whichever amount is lower, to persons [eighteen] fifteen years or older who:

(1) Are eligible for:

(A) The Supplemental Nutrition Assistance Program;

(B) The free and reduced price lunch program;

(C) Section 8 of the United States Housing Act of 1937, as amended; or

(D) Similar low-income assistance programs identified by the department of transportation;

(2) Do not own a registered motor vehicle with four or more wheels, as demonstrated by an affidavit signed by the applicant at the time of sale of the new electric bicycle [or], electric moped, or electric micro-mobility device, which may be audited by the department of transportation; or

(3) Are enrolled in school, community college, or university.

[(i)] (j) The department of transportation may contract with a third-party administrator to operate and manage the electric [bicycle and electric moped] mobility rebate program. The third-party administrator shall not be deemed to be a "governmental body" as defined in section 103D-104; provided that all moneys transferred to the third-party administrator shall have been appropriated by the legislature or shall be from moneys provided by the federal government or private funding sources. The third-party administrator shall not expend more than ten per cent of the amounts appropriated for the rebate program, or any other reasonable percentage determined by the department of transportation, for administration, promotion, and reporting of the electric [bicycle and electric moped] mobility rebate program.

(k) The department of transportation shall provide an annual report which shall detail the rebates provided by zip code, amount received, and type of rebate."

SECTION 4. Section 264-122, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) There is established within the highway development special fund an electric [bicycle and electric moped] mobility subaccount. The department shall expend moneys in the subaccount for the purposes of funding the electric bicycle and electric moped rebate program established pursuant to section 196-7.8."

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Department of Transportation; Rebate; Electric Mobility Subaccount; Electric Mobility Rebate Program

Description:

Renames and expands the scope of the Electric Bicycle and Electric Moped Rebate Program to the Electric Mobility Rebate Program. Increases the potential rebate amount.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.